Stanford Internal Audit
(s.o.)
5. - Assignment of Authority and Responsibility
: Description of Factor :
=> Indication of Stronger Controls
=> Indication of Weaker Controls
Assessment of Factor
5a-Delegation of authority and assignment of responsibility for operational and financial
=> Indication of Stronger Controls
Delegation of authority and assignment of responsibility is clearly defined. Individuals are held accountable for results.
=> Indication of Weaker Controls
Decisions are dominated by one or a few individuals. Roles and responsibilities of middle management are unclear
5b-Authority limits.
=> Indication of Stronger Controls
Authority limits are clearly defined in writing and communicated as appropriate.
=> Indication of Weaker Controls
Policies and procedures covering authority limits are informal or poorly communicated.
5c-Delegated signature authority.
=> Indication of Stronger Controls
Appropriate limits have been placed on each delegation of signature authority. Management periodically reviews the on-line list of all approvers to ensure it is appropriate and up to date.
=> Indication of Weaker Controls
Signature authority is delegated without adequate consideration. The unit never reviews the on-line list of designated approvers for its accounts
5d-Knowledge and experience
=> Indication of Stronger Controls
Key personnel are knowledgeable and experienced. Management does not delegate authority to inexperienced individuals.
=> Indication of Weaker Controls
Key personnel are inexperienced. Management delegates authority without regard to knowledge and experience.
5e-Resources.
=> Indication of Stronger Controls
Management provides the resources needed for employees to carry out their duties.
=> Indication of Weaker Controls
Management does not provide necessary resources.
http://www.stanford.edu/dept/Internal-Audit/d...